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Demand recovery drives soda ash profit improvement

wallpapers News 2020-06-19

Since the second half of 2011, affected by overcapacity, soda ash industry is difficult to operate product prices have been falling.

In the first half of this year, the soda ash plate of many listed chemical enterprises suffered serious losses.

However, since the second half of the year, the industry has emerged from the downturn.

With the recovery of dem, the price of products has been rising all the way, rising by about 40% from 1100 yuan / ton at the bottom.

The downstream uses of soda ash industry mainly include flat glass, electrolytic aluminum, daily chemical industry, etc.

, among which, the dem of glass field accounts for more than 50%.

The rise of soda ash industry is mainly due to the recovery of flat glass dem.

On the one h, due to the influence of the real estate industry, more than 30 pieces of float glass for construction were newly started resumed production during the year, the production of downstream float glass increased.

It is estimated that more than 10 new lines will be started by the end of this year.

On the other h, with the support of national policies for the photovoltaic industry, the operating rate of photovoltaic glass has increased significantly from the lowest 30% at the end of last year.

The strong recovery in the dem of flat glass industry drives the market dem of heavy soda ash, but the dem for light soda ash is weak.

Therefore, the recovery of soda ash market in the second half of the year is mainly due to the good dem for heavy soda ash the price rise.

This year, the internal situation of soda ash industry has also changed.

Due to the supplement of ammonium chloride products, the operation situation of traditional joint soda enterprises is better than that of ammonia alkali enterprises.

This year, the dem of the whole nitrogen fertilizer industry is weak, the sales of ammonium chloride are difficult.

In order to balance the inventory of ammonium chloride, it is difficult for the combined soda enterprises to increase the operating rate.

Therefore, the operating rate of the whole soda ash industry has been lower than 80%.

In addition, the dem for soda ash is improved in the second half of the year, the operating rate of the industry is also insufficient, which makes the oversupply situation of soda ash more relaxed.

There are regional differences in the profit improvement of soda ash enterprises.

This year, more than 20 of the more than 30 float glass production lines newly started resumed are mainly in Northeast China, Hebei Shong.

By the end of the year, it is expected that another 6 production lines will be put into operation in the above areas.

Affected by environmental factors, soda enterprises in Qingdao, Shijiazhuang, Lianyungang other places in North China will be shut down relocated, small soda plants with annual production capacity of 200000-300000 tons will be closed down gradually.

Therefore, soda ash enterprises located in North China, especially those with high heavy quality ratio, are obviously benefited.


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TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.